Tag Archives: Home Prices

The expectation for home prices and the percentage of those who think the U.S. economy is on the right path reached record all-time highs in Fannie Mae's April 2012 National Housing Survey. Americans continue to expect home prices to go up, with the projection averaging 1.3 percent over the next 12 months, the highest value recorded. The percentage of Americans who believe the economy is on the right track rose to 37 percent, a 2 point increase from the previous month and the highest level in the survey's two-year history. Still, an even greater 56 percent believe the economy is moving in the wrong direction.

While reports on home prices have been mostly uninspiring, with some flickering of hope here and there, rent prices continue to make significant strides, with rent increasing more than 10 percent compared to a year ago in certain markets, according to findings Trulia released Thursday. Rent prices rose 5.6 percent in April compared to a year ago during the same month, Trulia reported. Good news was also in store for asking prices, which compared to the previous month of March, increased 0.5 percent in April on a seasonally adjusted basis.

During a CoreLogic economic webinar Thursday, the company's chief economist, Mark Fleming, Ph.D., was asked if the housing market has hit bottom and will it stick, as reports seem to be speculating. Apparently, the market was thought to have hit bottom twice before already. Fleming noted that this happened in 2010 when the home buyer tax credit was available and a second time in 2011 before the European debt crises, the Japanese earthquakes, and our own debt ceiling debate crushed consumer confidence.

The Arizona capital of Phoenix was one of the hardest hit markets by the housing crisis, with home values plunging nearly 60 percent from 2006 through mid-2011 and foreclosure filings soaring. One analyst says it wasn't too long ago that Phoenix was considered ground zero of the housing market's collapse, but now, it's on a path to recovery that's considerably outpaced other distressed markets. So what's going on in the Valley of the Sun that's strong enough to lift the nation's sixth most populous city from the depths of the downturn?

According to data from Clear Capital, over the last year, REO prices have increased 5.5 percent, while fair market sales prices dropped 2.9 percent. The real estate data provider explained that demand for REOs is most likely causing the increase in prices and named Carrington Holding Company, Amherst Securities Group, and Waypoint Financial as examples of investors purchasing single-family REOs with the purpose of converting them into rental properties.

While Radar Logic reported home prices in February showed a month-over-month increase, the real estate data provider sees this trend as possibly being temporary, considering that warm weather and investment buying helped to drive up sales. Home prices increased 1.9 percent over the month ending February 16, according to Radar Logic's RPX Composite Price, which tracks 25 major metropolitan areas. This increase was bolstered by strong sales in February, with sales from institutional investors increasing significantly since 2009 in certain metros, especially the hardest hit areas.

According to the Zillow Home Value Forecast, prices are projected to fall 0.4 percent over the next year, but not all markets are expected to see this decline, with several already appearing to have reached bottom. Of the 30 metro areas covered by the Zillow forecast, 19 are expected to, or already have hit their lowest point in 2012, with nowhere else to go but up. Metro areas that are expected to see significant gains following their low point in the next 12 months include Phoenix, Miami-Ft. Lauderdale, and Tampa, according to the forecast.

FHFA's house price index showed a monthly increase of 0.3 percent in February and a 0.4 percent increase compared to a year ago. This marks the first 12-month gain since the July 2006 - July 2007 yearly increase. The FHFA index uses purchase prices of houses backing mortgages sold to or guaranteed by Fannie Mae or Freddie Mac. Patrick Newport, economist with IHS Global Insight, pointed out in a report that unlike FHFA indexes, Case-Shiller includes all transactions and, he said, GSE mortgages are in much better shape than other mortgages overall.

New homes sales fell 7.1 percent in March to a seasonally adjusted annual rate of 328,000, the steepest percentage decline since February 2011, the Commerce Department and Department of Housing and Urban Development reported jointly Tuesday. Sales for January were revised upward from 313,000 to 353,000. Economists had expected the report to show a seasonally adjusted annualized rate of 318,000 new home sales in March. New home sales in March were up 7.5 percent from March 2011.

The Case-Shiller Home Price Indexes fell for the sixth straight month in February with the 10- and 20-city indices each dropping 0.8 percent from January, Standard & Poor's, which compiles the indexes, reported Tuesday morning. The 10-city index slid to its lowest level since May 2003 and the 20-city index dropped to its lowest level since October 2002. Prices fell in 16 of the 20 cities surveyed, improving month-month in only Miami, Phoenix and San Diego. Prices were unchanged month-month in Dallas. Prices were down year-year in 15 of the 20 cities, improving only in Denver, Detroit, Miami, Minneapolis and Phoenix.